Higher carbon prices 'could help lower pollution'

The price of carbon emission permits is "far too cheap", an energy and technology expert has warned.

Executive director of the Energy Services and Technology Association Alan Aldridge believes carbon reduction targets are unlikely to be met unless it becomes more expensive to "buy" emissions.

Currently, carbon allowances are priced at €11 (£9.40) per tonne, but Mr Aldridge said this needs to be raised to around €50 if the EU is to achieve its goals.

"[Some energy targets] might be reduced, but the whole point of these investments are that they are long-term and you need stability," he commented.

At the recent Renewable UK conference, British energy and climate change secretary Chris Huhne stated the government must break through barriers to ensure power supplies are being derived from renewable sources.

He added that investors are not aware of the long-term benefits of putting their money into sustainable energy that will help drive down pollution.

Posted by Joseph Hutton